Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
- MATIC noticed spectacular improvement exercise in Q3
- Unfavorable sentiment and declining open curiosity (OI) may result in a worth correction
Polygon [MATIC] witnessed unbelievable development when it comes to its improvement and partnerships in 2022. However, the blockchain additionally suffered two unfavourable impacts from Terra Luna and the FTX crash in 2022. In consequence, MATIC rallied to $2, solely to drop to $1.5 and beneath $1 on the time of writing.
Learn Polygon’s [MATIC] price prediction 2023-2024
At press time, MATIC was buying and selling at $0.8416 after a collection of worth corrections that broke by new helps. However MATIC’s long-term outlook may have an attention-grabbing image to show.
Lengthy-term EMA transferring sideways: will MATIC get caught on this vary?
Supply: TradingView
MATIC has been buying and selling inside a variety since August. This was illustrated by the short-term Exponential Transferring Common (EMA) (blue line). The short-period EMA alternated between resistance and help a number of occasions between August and October. This underlined the impression that MATIC traded sideways throughout this era.
Particularly, the 200-day EMA (orange) acted as a resistance throughout the identical interval. MATIC solely broke by it on 3 and 10 November.
At press time, the 50-day EMA was in a downtrend, whereas the 200-day EMA moved sideways. This indicated that MATIC may break new take a look at new help ranges within the quick time period. Nonetheless, in the long run (a couple of days or perhaps weeks), it may flip again to buying and selling inside a variety.
The On-Stability Quantity (OBV) supported the above-mentioned pattern. It reached a collection of lows, which indicated a decline in shopping for quantity and strain. Moreover, the Relative Power Index (RSI) was seen transferring sideways beneath the impartial 50 stage. This confirmed that the bulls had been dropping affect with out giving the bears full market management.
Thus, the tussle between bulls and bears may take MATIC to the vary between $0.7739 and $0.9422. Nonetheless, an intraday shut above the 23.6% Fib stage would invalidate the above bias.
MATIC’s open curiosity is steadily declining…
Supply: CoinGlass
MATIC’s open curiosity rose steadily from October to early November. Since then, nonetheless, it has been on a gradual decline. This indicated a decline in cash inflows into the derivatives market and painted a bearish outlook. An additional discount in costs on the spot market was due to this fact possible.
Growth exercise elevated since Q3, however the unfavourable sentiment stays
Supply: Santiment
Data from Santiment supported the above-mentioned bearish outlook for MATIC. The information confirmed a unfavourable sentiment regardless of a gradual improve in improvement exercise from Q3. Thus, additional worth restoration may very well be hampered by the unfavourable sentiment.
The place does MATIC go from right here
MATIC’s worth efficiency was extra than simply depending on metrics. It misplaced its $0.82 worth after BTC misplaced $16.20K, thus proving BTC’s affect on the altcoin. So does MATIC supply lengthy buying and selling alternatives in the long term?
No. Each EMAs had been vital resistances, and the unfavourable sentiment and falling OI didn’t help such inclination.
Are there alternatives for short-selling? Sure, attainable within the quick time period, with $0.7739 and $0.7153 as new helps. Nonetheless, in the long run, MATIC may pattern sideways, and watching the final sentiment and BTC’s efficiency may present a greater worth course.